Sloan CPA is auditing the financial statements of Wallen Company for the year ended on December 31, 20X7. The following is a summary of the uncorrected misstatements that Sloan has identified during the past three years. These misstatements are immaterial and have related to isolated matters. A positive amount indicates that the misstatement overstates the related line item. An amount in a bracket indicates that the misstatement understates the related line item. During the most recent audit for 20X7, Sloan concluded that expenses totaling $67,000 were recognized in January of 20X8 (when Wallen paid them) but should have been recognized in 20X7. For the purpose of this question, assume that the income tax rate is 35%. Effect on net Effect on assets Effect on liabilities Effect on equity income 20X4 $62,500 $90,000 $27,500 $62,500 20X5 $22,700 $35,100 $12,400 $22,700 20X6 ($43,000) ($43,000) $0 ($43,000) At the year end of 20X7, under the rollover method, the misstatement of net income is iron curtain method, the misstatement of net income is $ Under the